What types of losses are typically excluded from homeowners insurance?

Homeowners insurance policies are designed to cover a range of risks associated with property and liability, but certain types of losses are generally excluded from coverage to limit the insurer's exposure to high-risk events. Flood, earthquake, and wear and tear are commonly excluded from standard homeowners insurance policies.

Flood insurance is typically offered as a separate policy because it is subject to specific risks and requirements that are different from standard property damage. Earthquakes are also excluded due to the potential for widespread and significant damage that could result in many claims at once, leading insurers to require a separate earthquake policy. Wear and tear, which refers to the deterioration of property due to normal use over time, is not covered because it is viewed as a maintenance issue rather than a sudden, unforeseen event.

In contrast, losses from fire and theft, injury to third parties, and damage caused by wild animals are usually covered under homeowners insurance, though there may be specific limitations or conditions for certain situations. Understanding these exclusions helps homeowners assess their risk and consider additional coverage options where necessary.